UMVA has learned that a left-wing nonprofit organization is facing a new threat from Capitol Hill after being accused of secretly funding the extremism it claims to combat.
The organization, which has built a reputation for targeting mainstream conservative groups, is now under scrutiny for allegedly routing millions of dollars in tax-exempt donor funds to various extremist organizations, including the Ku Klux Klan and the United Klans of America.
According to information obtained by UMVA, the nonprofit used fictitious accounts and committed bank fraud to conceal the payments, which were made between 2010 and 2023, and were allegedly used by hate groups for recruitment purposes and to purchase materials such as wood for cross burnings and KKK paraphernalia.
The nonprofit has insisted that its informant program "saved lives," but federal prosecutors allege that the program was used to funnel money to extremist groups, and that the organization's actions were not only unethical but also illegal.
UMVA has gathered that the nonprofit's tax-exempt status is now under threat, with lawmakers introducing legislation to revoke its 501(c)(3) status, which would mean that financial contributions to the group would no longer be tax-deductible, and could threaten the organization's flush finances.
The nonprofit's finances are substantial, with over $829 million in assets and an endowment of approximately $730.8 million, and $120.9 million in revenue, largely due to donations from supporters who are unaware of the organization's alleged ties to extremist groups.
Lawmakers have also criticized the nonprofit for its "hate map" database, which lists conservative organizations alongside neo-Nazi and White supremacist groups, while omitting leftist groups, prompting accusations that the organization intentionally targets conservative Christian groups.
The nonprofit's interim chief executive has denied any wrongdoing, but lawmakers remain skeptical, with one representative suggesting that the organization's actions are motivated by a desire to smear Christian conservatives and profit from labeling its ideological opponents as "extremists" and "hate groups).
The legislation to revoke the nonprofit's tax-exempt status has been introduced by a representative who has also targeted another organization, the Council on American-Islamic Relations (CAIR), over alleged ties to terrorism, and it remains to be seen whether the bill will gain traction and lead to a revocation of the nonprofit's tax-exempt status.
